New Delhi, Sep 15: Wholesale Price Index (WPI) inflation returned to the positive zone in August at 0.52 per cent after two months of deflation, driven by rising prices of food articles and manufactured goods, according to government data released on Monday. WPI had contracted by 0.58% in July and 0.19% in June, while it stood at 1.25% in August 2024.
The Ministry of Industry and Commerce said the positive inflation rate in August 2025 was primarily due to higher costs of food products, manufactured goods, non-food articles, non-metallic mineral products, and transport equipment.
Deflation in food articles eased to 3.06% in August from 6.29% in July, with vegetables showing a notable increase in prices. Vegetable prices, which had fallen 28.96% in July, recorded a 14.18% drop in August. Manufactured products saw inflation rise to 2.55% in August, up from 2.05% in July.
However, fuel and power continued to witness deflation at 3.17% in August, compared to 2.43% in July.
The Reserve Bank of India (RBI) had kept benchmark policy rates unchanged at 5.5% last month, considering retail inflation trends. Retail inflation, after declining for nine consecutive months since November 2024, inched up to 2.07% in August, largely due to higher prices of kitchen staples like vegetables, meat, fish, and eggs.
This uptick in WPI signals early signs of inflationary pressures in key sectors, even as overall price growth remains moderate.